Only the government could lose $14 million in money that was designated as emergency aid from the Federal Emergency Management Agency (FEMA). The inspector general for the Department of Homeland Security launched an investigation into where the money actually went. It was awarded to the Omaha Tribe of Nebraska and Iowa for flood damage that occurred in 2011. The results are startling.

The IG audit discovered that a large chunk of the money went to unauthorized casino repairs. The IG states;

“The Omaha Tribe’s accounting system and supporting documentation were so unreliable and in such disarray that the only amounts we were able to verify with any degree of confidence were $2.8 million of unneeded funds; $165,000 of unclaimed insurance coverage; and about $74,749 of eligible and supported costs,” the inspector general said. “We question the remaining $13.9 million as unsupported."

The report found “serious and pervasive” mishandling of the emergency money by the tribe. The IG stated that he had “little confidence” in the tribe’s accounting system.

The report went on to detail $168,764 dollars for “ineligible expenditures to repair its old casino” and gave $312,282 given by the tribe to itself as a “bonus.”

The old casino was not eligible for repairs for a good reason, FEMA had approved building a new one.
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